Usually directors and high end employes are offered special incentives such as being offered new shares in the company that is taken over, or to keep their existing shares as happened in the recentt Ausenco takeover.
Further the reports that are written by so called Independant expert companies who are supposably giving "independant" view point about the advantages / disadvantages of the TO are certany not going to be independant as the board has already stated in their newsleter that they are in favour, so the board is unlikely to hire a company with a differering view from its own to give an anaylisis.
Takeovers are generally only good for the company taking the other over and not the share holders whom are being cheated out of its real value simply because they don't realise how much its really worth.
I think share holders should vote against this take over in favour of a longer term much more profitable licencing deal perhaps with a small upfront payment and depeding on the size of the upfront payment a 10 to 20% royalty on sales.
I see that a take over is the result weak negotiating by management and a lack of management ability to relay the value of its technology to more than one potentual big Pharma company.
A take over like this would be more difficult (expensive) to consider as Bio is more highly valued by its share holders in the USA
Anyway hold on usually your first offer is not your best offer
Maybe another company will come forward wanting a Licencing agreement
Most Licensing agreements are based on 10 to 20% royalties on product sales but can be as high as 60%
20% on just 1 billion worth of sales would generate $200 million in revenue
with company holding 20% of $200 = $40 million for R&D
then that would allow 80% for dividends = $160 million dividends
with about 278.3 million shares that would be 57.5 cents per share dividend per year
Thats 57.5 cents on just 1 billion worth of sales
the question is how many billions of sales is this technology going to generate?
And are share holders really going to just give this stock away ?
VLA Price at posting:
$1.69 Sentiment: Hold Disclosure: Not Held
